12/07/2021
Good read
๐๐
๐๐๐ ๐๐๐ ๐๐๐๐๐๐๐, ๐๐๐๐ ๐๐๐๐ ๐๐๐๐๐๐ ๐๐ ๐๐๐๐ ๐๐๐๐๐๐๐๐๐๐?
(Good article to ๐๐๐๐๐ it out to raise awareness on the importance of MRTA and preparing a will)
Recently, one of my friend is diagnosed with Covid-19.
As he was lying on his hospital bed, he started to get worried of what will happen to all his properties if he dies suddenly.
As you all know, the new Delta variant is highly virulent and has shown it can kill young people.
So please guys, be ever vigilant.
Anyway, below are some of his questions.
๐๐ ๐ ๐๐ข๐, ๐ฐ๐ก๐๐ญ ๐ฐ๐ข๐ฅ๐ฅ ๐ก๐๐ฉ๐ฉ๐๐ง ๐ญ๐จ ๐๐ฅ๐ฅ ๐ฆ๐ฒ ๐ก๐จ๐ฎ๐ฌ๐ข๐ง๐ ๐ฅ๐จ๐๐ง?
๐นThe Mortgage Reducing Term Assurance (MRTA) covers the housing loan, so the bank will enforce the terms of MRTA and make full repayment of the remaining balance.
๐นHowever, IF YOU DID NOT TAKE MRTA or the tenure of the insurance has lapsed without renewal, your next of kin or the โnew ownerโ of the property can continue to make payment (after getting a court order - refer question no.3.
๐นThe new owner of your property can redeem or continue to make repayment of the housing loan.
๐นIt there is no repayment towards the housing loan from the property of the deceased (also the borrower), then the property will be auction off.
๐๐ ๐ ๐๐ข๐ ๐ง๐จ๐ญ ๐๐ซ๐๐๐ญ๐ ๐ ๐ฐ๐ข๐ฅ๐ฅ ๐๐ง๐ ๐ ๐ฉ๐๐ฌ๐ฌ ๐๐ฐ๐๐ฒ ๐ฌ๐ฎ๐๐๐๐ง๐ฅ๐ฒ ๐๐ฎ๐ ๐ญ๐จ ๐๐จ๐ฏ๐ข๐, ๐ฐ๐ก๐๐ญ ๐๐ซ๐ ๐ญ๐ก๐ ๐ฉ๐จ๐ฌ๐ฌ๐ข๐๐ฅ๐ ๐ข๐ฆ๐ฉ๐ฅ๐ข๐๐๐ญ๐ข๐จ๐ง๐ฌ?
๐ปThere is no major implication if a will is not created.
๐ปIf there is no will, your next of kin may apply Grant of Letter of Administration in Court to protect and to take over the property.
This process may take months to years.
๐๐ก๐๐ญ ๐๐ซ๐ ๐ญ๐ก๐ ๐ฅ๐๐ ๐๐ฅ ๐ฌ๐ญ๐๐ฉ๐ฌ ๐ญ๐ก๐๐ญ ๐ฐ๐ข๐ฅ๐ฅ ๐ก๐๐ฉ๐ฉ๐๐ง ๐ข๐ ๐ญ๐ก๐๐ซ๐ ๐ข๐ฌ ๐ง๐จ ๐ฐ๐ข๐ฅ๐ฅ?
๐ธIf no will is created, your next of kin or the beneficiary of your property may file Originating Summons in court for an order to appoint themselves or somebody else as the new owner of the deceased estate.
๐ธThe court will determine whether there is any objection from the beneficiaries to appoint the applicant as new owner (administrator).
๐ธIf there is no objection, the court will grant the order appointing the applicant as new owner (administrator) of the property.
๐ธOnce the order is made, the new owner shall forward a copy of the court order to the bank for the record and continue to make repayment of the loan or other-wise to redeem the property from the Bank.
Moral of the story.
Always pay for full MRTA + write a will.
I sort of regret not taking full MRTA when I was a younger investor.
The premium that comes during renewal of MRTA is much higher.
Donโt be a cheapskate.
Just take full tenure MRTA.
And donโt delay writing a will.
This article is adapted from Property Hunterโs article back in 2019.
